Oracle Corporation (NYSE:ORCL) Receives Consensus Rating of “Moderate Buy” from Brokerages

Oracle Corporation (NYSE:ORCL) has earned a consensus rating of “Moderate Buy” from the forty analysts that are covering the company, MarketBeat reports. One equities research analyst has rated the stock with a sell rating, eight have given a hold rating, twenty-eight have assigned a buy rating and three have issued a strong buy rating on the company. The average 1 year target price among brokerages that have covered the stock in the last year is $268.2703.

Several research firms recently weighed in on ORCL. Wedbush cut their price target on shares of Oracle from $275.00 to $240.00 and set an “outperform” rating on the stock in a report on Thursday. Cantor Fitzgerald restated an “overweight” rating and issued a $284.00 price objective on shares of Oracle in a report on Thursday. Monness Crespi & Hardt reaffirmed a “hold” rating on shares of Oracle in a research report on Wednesday, March 11th. Jefferies Financial Group reduced their price target on shares of Oracle from $400.00 to $320.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Finally, Oppenheimer increased their price target on shares of Oracle from $235.00 to $275.00 and gave the stock an “outperform” rating in a research note on Monday.

Key Oracle News

Here are the key news stories impacting Oracle this week:

• Positive Sentiment: Oracle posted record fiscal Q4 results, with revenue and EPS both beating estimates, and cloud infrastructure revenue surged as demand for AI-related capacity stayed strong.
• Positive Sentiment: The company reported a massive $638 billion remaining performance obligation backlog, signaling deep customer demand and a long runway for future revenue.
• Positive Sentiment: Oracle also won a $395.8 million U.S. Office of Personnel Management contract to modernize federal HR systems, adding a new government growth opportunity. Article Title
• Neutral Sentiment: Several analysts raised price targets or reiterated bullish ratings after the report, suggesting some on Wall Street still see upside despite the selloff.
• Negative Sentiment: Shares are under pressure because Oracle said AI-related capital expenditures will be much higher than expected, with spending potentially reaching about $95 billion in fiscal 2027.
• Negative Sentiment: Management also signaled more debt and equity funding, including plans to raise roughly $40 billion, which raised concerns about leverage, dilution, and weaker free cash flow.
• Negative Sentiment: Oracle warned that gross margins may step down as it ramps data-center buildout, adding to worries that strong AI growth may come with lower near-term profitability.

Oracle Stock Down 8.6%

Shares of NYSE:ORCL opened at $184.03 on Friday. The stock’s 50-day moving average is $183.90 and its 200 day moving average is $177.88. The company has a market cap of $529.27 billion, a PE ratio of 31.57, a P/E/G ratio of 1.58 and a beta of 1.65. The company has a debt-to-equity ratio of 3.66, a current ratio of 1.35 and a quick ratio of 1.35. Oracle has a 1 year low of $134.57 and a 1 year high of $345.72.

Oracle (NYSE:ORCL) last released its quarterly earnings data on Wednesday, June 10th. The enterprise software provider reported $2.11 earnings per share for the quarter, topping the consensus estimate of $1.96 by $0.15. The business had revenue of $19.18 billion during the quarter, compared to analysts’ expectations of $19.10 billion. Oracle had a return on equity of 62.74% and a net margin of 25.37%.The business’s revenue was up 20.6% on a year-over-year basis. During the same quarter last year, the business posted $1.70 EPS. Oracle has set its Q1 2027 guidance at 1.720-1.760 EPS and its FY 2027 guidance at 8.050-8.050 EPS. Sell-side analysts anticipate that Oracle will post 6.33 EPS for the current year.

Oracle Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Friday, July 24th. Stockholders of record on Friday, July 10th will be given a $0.50 dividend. The ex-dividend date of this dividend is Friday, July 10th. This represents a $2.00 annualized dividend and a dividend yield of 1.1%. Oracle’s dividend payout ratio is currently 35.91%.

Insider Activity at Oracle

In other news, EVP Stuart Levey sold 15,000 shares of the firm’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $176.19, for a total value of $2,642,850.00. Following the completion of the transaction, the executive vice president owned 3,429 shares in the company, valued at $604,155.51. This trade represents a 81.39% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 40.90% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Oracle

Several institutional investors and hedge funds have recently added to or reduced their stakes in ORCL. Xponance Inc. lifted its position in shares of Oracle by 1.8% during the 3rd quarter. Xponance Inc. now owns 406,544 shares of the enterprise software provider’s stock valued at $114,336,000 after buying an additional 7,320 shares in the last quarter. DDD Partners LLC purchased a new stake in Oracle in the 4th quarter worth approximately $1,677,000. William Blair Investment Management LLC raised its stake in Oracle by 28.6% during the 3rd quarter. William Blair Investment Management LLC now owns 1,107,586 shares of the enterprise software provider’s stock worth $311,497,000 after acquiring an additional 246,243 shares during the period. New Mexico Educational Retirement Board raised its stake in Oracle by 4.2% during the 4th quarter. New Mexico Educational Retirement Board now owns 76,590 shares of the enterprise software provider’s stock worth $14,928,000 after acquiring an additional 3,100 shares during the period. Finally, KADENSA CAPITAL Ltd lifted its holdings in Oracle by 1,945.8% during the third quarter. KADENSA CAPITAL Ltd now owns 92,736 shares of the enterprise software provider’s stock valued at $26,081,000 after purchasing an additional 88,203 shares in the last quarter. Hedge funds and other institutional investors own 42.44% of the company’s stock.

About Oracle

Oracle Corporation is a multinational technology company that develops and sells database software, cloud engineered systems, enterprise software applications and related services. The company is widely known for its flagship Oracle Database and a portfolio of enterprise-grade software products that support data management, application development, analytics and middleware. Over recent years Oracle has expanded its focus to include cloud infrastructure and cloud applications, positioning itself as a provider of both platform and software-as-a-service solutions for large organizations.

Oracle’s product and service offerings include Oracle Database and the Autonomous Database, Oracle Cloud Infrastructure (OCI), enterprise resource planning (ERP), human capital management (HCM) and supply chain management (SCM) cloud applications (often grouped under Oracle Fusion Cloud Applications), middleware such as WebLogic, and developer technologies including Java and MySQL.